Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned negative despite higher revenue, as operating cash flow was very low relative to revenue. Cash conversion weakened significantly compared to both the prior quarter and the same quarter last year.
- The company generated a minimal amount of operating cash flow against substantial revenue; after capital expenditure, free cash flow was negative, resulting in a negative margin. This indicates a sharp decline in cash conversion efficiency from previous periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were much lower, and the margin turned from positive to negative. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$28.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$558000
Cash generated by operations before capital spending.
CapEx
$28.7M
Capital spending and related asset purchases.
FCF margin
-0.6%
The share of revenue converted into free cash flow.
TTM FCF yield
3.1%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-06-30 | $4.3B | $193.7M | $28.0M | $165.6M | 3.8% |
| 2025-09-30 | $4.3B | $475.5M | $26.7M | $448.8M | 10.4% |
| 2025-12-31 | $4.5B | $524.4M | $31.9M | $492.5M | 10.9% |
| 2026-03-31 | $4.6B | $558000 | $28.7M | -$28.2M | -0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Decline
Operating cash flow fell to a minimal level, causing free cash flow to turn negative. The filing text notes management's focus on efficient conversion of operating income into cash.
The negative free cash flow and margin signal a temporary cash conversion disruption in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated a minimal amount of operating cash flow against substantial revenue; after capital expenditure, free cash flow was negative, resulting in a negative margin. This indicates a sharp decline in cash conversion efficiency from previous periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were much lower, and the margin turned from positive to negative. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and the margin weakened.
Monitor the level of operating cash flow, which was unusually low relative to revenue in this quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $34.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.